Dealing Desk: U.S. Dollar Booms as the Rate Hike Is Nigh

By Rachel Stonier

Rachel Stonier November 25, 2016

Goldmoney Wealth clients have been net buying all precious metals in the past week; while selling has taken place in platinum and palladium, the drop in both gold and silver prices has seen clients taking advantage of the move down and buying.

Clients have preferred vaults in Singapore and Switzerland, and have shown less preference for the U.K. and Hong Kong vaults.

Gold started the week in the $1,213/1,214 range, with silver opening at $16.59/16.64; both metals declined as U.S. equity markets posted gains. Platinum prices remained steady, while palladium rose to a five-month high of $749.

The release of key U.S. economic data on Wednesday afternoon caused a surge in the U.S. Dollar, pushing it to a 13-year high; gold fell to a nine-month low range of $1181/1182, while silver followed suit and fell to a five-month low range of $16.16/16.21.

Gold should be supported not to dip below $1,144.90 or rise higher than $1,218.60, while silver finds support at $16.36 with resistance at $16.84.

“We see still further downside risk for both gold and silver, however these dips make for good buying opportunities,” said Rachel Stonier, dealing manager at Goldmoney Wealth. “Palladium is still on the rise, driven by the Chinese automotive industry and the use of the metal in catalytic converters.”

Palladium remained the strongest performer week over week, gaining 1.7% on last week’s price; other precious metal prices decreased: platinum posted a 2.6% decline, gold fell by 3.4%, and silver suffered a 3.8% loss. The gold to silver ratio has increased to 72.5.

GoldmoneyGoldmoney is one of the world’s leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.Through Goldmoney’s non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada. Goldmoney partners with Brink’s, Loomis International (formerly Via Mat), Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.Goldmoney currently has over 25,000 customers worldwide and holds over $1.6 billion of precious metals in its partner vaults.Goldmoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. Goldmoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.